Shares in the German mobile operator Mobilcom have slid by as much as 60% following a report that its partner and shareholder France Telecom is to abandon the firm.

If France Telecom does turn its back on the Mobilcom, the mobile operator is widely expected to file for insolvency.

France Telecom owns 28.5% of Mobilcom, and has to decide whether to buy the rest of the company's shares and take on its debt, or to pull out of the partnership.

A report in French newspaper Le Figaro on Wednesday said France Telecom had decided to abandon the German business.

Mobilcom's shares dived by more than 60% to 1.78 euros on Wednesday morning, before recovering slightly to close at 2.05 euros.

Uncertain future

On Thursday, France Telecom's board will meet to discuss plans for restructuring the company's finances.

Analysts say the company is keen to avoid taking over Mobilcom, as it would have to take on the mobile operator's 6.4bn euro debt, adding to its own considerable debt pile.

Mobilcom's future has been in doubt for several months following wranglings between France Telecom and the mobile firm's founder Gerhard Schmid over investment commitments and, later, takeover terms.

Mr Schmid said on Wednesday that he did not think that France Telecom would pull out.

"Several elements show that France Telecom has committed itself financially to Mobilcom long term," he said in a statement.

'Doomed'

And, in a statement, Mobilcom said it expected its partnership to continue.

Analysts said Mobilcom was doomed if France Telecom pulled out.

"We have been warning about a possible Mobilcom insolvency for months now," said SES Research analyst Klaus Baumann.

"If France Telecom steps back, it will come to that in any case, unless an investor stepped in, which is very unlikely."